Ahead of the Lunar New Year holiday, LG will pay partner companies earlier for deliveries and launch community sharing activities and technical support for small and midsize partners.
LG Electronics, LG Innotek, LG Chem, LG Energy Solution, LG H&H, LG Uplus, LG CNS and D&O, eight affiliates of LG Group, announced on the 9th that they will pay about 600 billion won in delivery payments up to two weeks early.
LG affiliates operate financial support programs such as win-win cooperation funds, win-win payments and direct loans so partners can raise funds through interest-free or low-interest loans, and they support technology development, the core competitiveness of materials, parts and equipment partners.
In 2023, LG Electronics created a 100 billion won ESG fund and is now operating a total 300 billion won win-win cooperation fund to offer low-interest loans to partners that need operating capital. It is also supporting partners' technological competitiveness by providing 40 billion won annually in interest-free funding for new and automated equipment investments.
LG Uplus is providing financial support, including a 75 billion won win-win cooperation fund, while also supporting infrastructure such as a "network equipment test bed" and an "Internet of Things (IoT) certification center," offering space and equipment to help small and midsize partners with weak infrastructure develop technology.
LG Electronics and LG Uplus run a technical data custody support program that deposits technical documents with a government-designated institution so small and midsize partners can protect newly developed technologies.
LG Innotek and LG Chem are helping partners raise funds by operating, respectively, a 143 billion won co-prosperity fund and a 206 billion won ESG and win-win fund, while LG Energy Solution operates a 150 billion won investment support fund.
An LG official said, "We hope early payment of delivery proceeds will provide practical help to partners and have a positive impact on revitalizing local economies," and added, "LG will prepare various support programs to help partners burdened by higher financing costs and will continue win-win cooperation, including support for technology development."